Risk management overview

How does Microsoft assess and manage risk across the enterprise?

Risk management is the process of identifying, assessing, and responding to threats or events that can impact Company or customer objectives. Risk management at Microsoft is designed to anticipate new threats and provide ongoing security for our cloud systems and the customers who use them.

Microsoft's risk management align to the Enterprise Risk Management (ERM) framework. ERM enables the overall enterprise risk management process and works with management across the enterprise to identify and ensure accountability for Microsoft's most significant risks.

Risk management structure.

Microsoft ERM enables common risk management principles across the enterprise so business units can independently facilitate consistent and comparative risk assessments. This coordination gives Microsoft the ability to aggregate and report risk information in a consolidated manner for management. ERM provides business units in Microsoft with common methodologies, tools, and goals for the risk management process. Microsoft 365 and other engineering groups and business units use these tools to conduct individual risk assessments as part of their own risk management programs under the guidance of ERM.

How do Microsoft online services work with ERM?

Each online service follows ERM guidance to manage risks across Microsoft services. The program focuses on aligning the ERM framework with existing Microsoft engineering, service operations, and compliance processes, making the Risk Management program more effective and efficient. Each online service's risk management activities ultimately roll up into and inform the ERM process.

As part of risk assessment activities, each online service analyzes design and operating effectiveness of controls implemented as part of the Microsoft Controls Framework (Framework). The Framework is a rationalized set of controls that, when properly implemented along with supporting compliance activities, allows engineering teams to comply with key regulations and certifications.

Microsoft's online services are regularly audited for compliance with external regulations and certifications. Refer to the following table for validation of controls related to risk management.

Azure and Dynamics 365

External audits Section Latest report date
ISO 27001/27002

Statement of Applicability
Certification
A.5: Information security policies December 2, 2020
ISO 27017

Statement of Applicability
Certification
A.5: Information security policies December 2, 2020
ISO 27018

Statement of Applicability
Certification
A.5: Information security policies December 2, 2020
ISO 22301

Certification
6.1.1: Determining risks and opportunities
6.1.2: Addressing risks and opportunities
March 13, 2020
SOC 1
SOC 2
SOC 3
SOC2-26: Annual risk assessment March 31, 2021

Office 365

External audits Section Latest report date
FedRAMP CA-2: Security assessments
CA-5: Plan of action and milestones
RA-3: Risk assessment
September 24, 2020
ISO 27001/27002/27017

Statement of Applicability
A.5: Information security policies April 20, 2021
SOC 1 CA-03: Risk management December 24, 2020
SOC 2 CA-02: Governance, risk, and compliance team responsibilities
CA-03: Risk management
CA-17: Microsoft security policy
CA-24: Internal risk assessment
December 24, 2020